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CUNO Incorporated (NASDAQ: CUNO)
400 Research Parkway
Meriden 06450
President and CEO: Mark Kachur
Net Sales (FYE October 31, 1998): $198,845,000
Net Income (FYE October 31, 1998): $6,355,000
Market Capitalization: $317.0 million
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Business New Haven
8/9/1999
By: BNH
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The world can be a pretty dirty place. Contamination and pollution have become serious concerns and have fostered whole new industries to deal with them. Purifying, filtering and separating liquids and gases have become increasingly important and Meriden-based Cuno Inc. has made a business of supplying equipment for those purposes to the health-care, potable water and fluid processing markets.
Named for its founder, Charles Cuno, Cuno traces its beginnings to 1912 as a local manufacturer. The firm then moved into the business of fluid purification, and for the ten years following 1986 it operated as a part of Commercial Intertech. Following its spin-off from its parent, Cuno became a separate, publicly traded company in 1996.
In 1998, 32 percent of the company's revenues were generated by sales to customers by its Water Group. These water filtration and treatment systems are sold worldwide for commercial and household use. The company also focuses on its Recipe Quality Water for the food-service industry.
Cuno's products go beyond filtration and purification. The company's fluid-processing business generates 37 percent of its revenues through sales to customers in industrial sectors such as chemicals, electronics, oil and gas and paint and coatings. These customers require improvements in product quality, reduced waste and manufacturing costs through use of the company's products.
The company's filtration and purification technology is also applied to the health-care industry which accounts for 31 percent of the company's revenue. Its products have applications for laboratory and other medical uses. The company's filtering products for the food and beverage industry are supplied to bottled water, wine, beer and soft drink producers.
Cuno sells its products around the globe with domestic operations contributing just over half (54 percent) of 1998 sales. Europe was the second-largest buyer of Cuno wares (16 percent of total sales), Japan at 13 percent and the company's Asian (Singapore), Pacific (Australia) and Latina (Brazil) operations rounding out the remaining 17 percent.
For 1998, most of the company's units worldwide posted substantial increases in sales 9IN LOCAL CURRENCY GROWTH RATES: Cuno U.S. growth at 15 percent, Cuno Europe at 12 percent, Cuno Pacific, 27 percent, and Cuno Latina, 20 percent. Cuno Japan's 1998 sales were about level with the previous year, while Cuno Asia posted declining sales which company officials attribute overseas economic conditions.
The company is pursuing a four-part long term strategy which includes the development of new products, improvement in operating efficiencies, enhancement of distribution lines and careful selection of acquisitions. In the past year Cuno has addressed all four components of this strategy. New Cuno products introduced between 1996 through last year accounted for about 15 percent of total sales for 1998.
The company also has several new product introductions planned for 1999. Late last year Cuno embarked on a restructuring initiative which included outsourcing its metal housing works, streamlining domestic membrane production, workforce reduction and consolidation of specified distribution operations. In line with its acquisition strategy, Cuno last year acquired Chemical Engineering Corp. (CEC).
Since 1994 Cuno's sales have grown almost 40 percent to $198.9 million for the 1998 fiscal year. From 1997 to '98, revenues rose at a six-percent clip. Operating income was $11.9 million for the year compared to $20.2 million for 1997 (however, 1998 included a $7.4 million restructuring charge). Net income of $6.4 million (39 cents per diluted share) for 1998 compares to $12.1 million (81 cents per diluted share) for the year before.
For the six months ended April 30, the company's sales were $104.7 million, compared to $95.3 million for the prior year. Net income of $4.9 million (30 cents per diluted share) compares to $6.6 million (41 cents per diluted share) for the prior year. Increases in 1999 sales were offset by increases in COGS and SG&A and R&D expenses. At April 30 Cuno had total assets of $169.5 million and stockholders' equity of $94.2 million. With long-term debt at $13.4 million, the company maintains a low long-term debt-to-equity ratio.
To reduce debt the Cuno in 1997 offered about 2.2 million shares of common stock, generating proceeds of $28.1 million. The company's stock trades on the NASDAQ and has experienced a 52-week high in the $21 range and low in the $10 range. The stock has been slowly working its way upward since its 52-week low in October 1998, closing at 19 1/2, up 5/16, on July 23. Although the stock has bounced back to its levels of a year ago, it must be noted that about half of the company's sales are generated overseas, creating exposure to currency rate fluctuations and foreign economic situations.
- K. Hansen
BUSINESS WIRE
Novametrix, Thermo Respiratory Ink Pact
WALLINGFORD - Novametrix Medical Systems Inc. (NASDAQ: NMTX) and Thermo Respiratory Group have signed a distribution agreement by which Thermo will market Novametrix' hand-held devices for monitoring oxygen and carbon monoxide. A division of Thermo Electron Co., Thermo provides ventilators and associated accessories for home-care use and thus opens a new avenue of access to Novametrix monitoring devices.
Bridgeport Machine, Goldman Industrial Merger Hits Snag
BRIDGEPORT - Bridgeport Machines Inc. (NASDAQ: BPTM) announced that its merger with the Goldman Industrial Group Inc. will be delayed to allow time for Goldman to satisfy lender conditions regarding merger funds. Following the merger, Bridgeport Machines, a manufacturer of manual and computer-controlled machine tools for metal cutting, will operate as a wholly owned subsidiary of privately held Goldman. Goldman provides industrial machinery for metalworking.
MacDermid First Quarter Results/Dividend
WATERBURY - MacDermid Inc. (NYSE:MRD) announced first quarter (through June 30) sales of $119.1 million, an 47-percent increase over the prior year's first quarter sales of $81.1 million. Quarterly net earnings were $9.974 million (39 cents per diluted share), an increase of 23 percent over $8.093 million (32 cents per diluted share) for the equivalent period a year before.
In a separate announcement, the MacDermid board of directors declared a dividend of two cents per share of common stock for shareholders of record September 15, payable October 1.
Olin Settles Love Canal Cleanup Costs
BUFFALO - Olin Corp. (NYSE: OLN) and Occidental Chemical Corp. (formerly known as Hooker Chemical) have agreed to reimburse the federal government and New York state $7.1 million for cleanup and wetlands restoration at the Love Canal site in upstate New York. Love Canal was one of a number of contaminated environments in the 19070s which led to the creation of the Superfund program. Initial lawsuits were filed in 1979 and cleanup remains in progress at three of the four sites.
First Union Hires More Tellers
CHARLOTTE - First Union Corp. (NYSE: FTU) plans to increase its staff of tellers by 2,000 in response to negative customer feedback regarding the company's staff cutbacks. First Union attempted to lay off workers, cut costs and thereby increase profits to satisfy investors, but learned that its customers were dissatisfied dealing with technology instead of humans. First Union has already hired approximately 1,000 tellers, with plans for hiring an additional 1,000 plus sales specialists.
Q2 Results for Stanley
NEW BRITAIN - The Stanley Works (NYSE: SWK) announced second-quarter net sales of $685.5 million, compared to $691.8 million for the second quarter of 1998. Reported earnings for the second quarter were $25.3 million (28 cents per share), compared to $42.2 million (47 cents per share) for the comparable 1998 quarter. For the first six months net sales were reported at $1,369.2 million, compared to $1,363.7 million for the first six months of 1998. Net earnings were $55.6 million (62 cents per diluted share), compared to $78.6 million (87 cents per diluted share) for the comparable period a year ago.
Connecticut Energy, Energy East File for Merger
BRIDGEPORT and STAMFORD - Connecticut Energy Corp. (NYSE: CNE) and Energy East Corp. (NYSE: NEG) have filed an application with the state's Department of Public Utility Control seeking approval for their $617 million merger. For each share of stock, Connecticut Energy shareholders will receive $42 (half in cash, half in Energy East common stock). It is planned that Bridgeport will continue to be home to Connecticut Energy's headquarters. Southern Connecticut Gas Co. will continue under its own name as an operating utility of Connecticut Energy. The merger is subject to all required approvals.
Ames Openings
ROCKY HILL - Ames Department Stores Inc. (NASDAQ: AMES) announced the grand opening of 54 recently renovated Hills stores in New York, Maryland, North Carolina, Pennsylvania, Massachusetts, North Carolina and Virginia. The openings represent the second phase of transformation into the Ames format for the former Hills stores. Ames currently has over 450 stores, including the Hills stores and some former Caldor locations.
Cerep and Bristol Myers Squibb Sign Pact
PARIS - French drug discovery company Cerep S.A. and Bristol-Myers Squibb Co. (NYSE: BMY) have signed a strategic collaboration agreement including a research/drug discovery program, subscription for Cerep's BioPrint database and transfer of scientific personnel, facilities and equipment from a French subsidiary of Bristol-Myers Squibb to Cerep. The five-year agreement allows BMY an option to terminate after three.
Webster Announces Q2 Results
WATERBURY - Webster Financial Corp. (NASDAQ: WBST) reported second-quarter net income at $23.2 million (61 cents per diluted share), a sharp increase over the $9.4 million (24 cents per diluted share) reported for the quarter a year ago. For the six months ended June 30, net income was $45 million ($1.20 per share), compared to $29.1 million (75 cents per diluted share) for the comparable prior period. The company also announced a quarterly dividend of 12 cents per share for shareholders of record August 2, payable August 16.
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